South Africa Secures $1.5B Loan with Social License Conditions Attached

On June 23, 2025, the World Bank approved a $1.5 billion loan to help modernize South Africa’s energy and transport sectors. The 16-year facility supports upgrades to ports, railways, and the national power grid amid ongoing blackouts. Uniquely, the loan includes conditions tied to “social license” commitments, requiring greater community engagement and inclusive infrastructure planning. The funding also provides relief to state finances as key reforms of state-owned enterprises advance. By embedding social legitimacy into development finance, this deal signals a shift toward more accountable infrastructure investment in South Africa.